Merrill Lynch increased its 2004 profit estimates for BHP by 4 per cent to $US3.1 billion ($4.1 billion) and for Rio by 12 per cent to $US2.4 billion, saying prices for copper, zinc, iron ore and coking coal will climb. WMC Resources' outlook was boosted 6 per cent to $US647 million.

"We still like resources stocks and we're confident that more upgrades will come through and start to push mining stocks' prices up, especially if Chinese growth continues to be strong and Japan's economic recovery turns out to be real," said Jim Reid at Trust Co Funds Management in Sydney.

News Corp edged up 5c to $11.63, while the prefs lifted 2c to $10.28. Telstra was up 4c to $4.56 after the bill to sell the rest failed in the Senate.

Qantas lost 3c to $3.40 while Virgin Blue rose 1c to $2.37.

In the retail sector, David Jones lost 6c to $1.54 but Coles Myer was up 4c at $8.15.

Shares of business software maker MYOB surged 11c to $1.23 and merger partner Solution 6 was up 4c at 82c.

DiamondEx made a lacklustre debut on the ASX yesterday, closing 2.5c above its 20c issue price.